ACE: Pulse of the Industry Findings

Key industry challenges highligted, as Association President Michelle Muscat calls for reform.

Earlier this year, the Association of Catering Establishments (ACE) presented its findings from the latest Pulse of the Industry report, shedding light on the pressing issues facing the catering sector in Malta.

The study, conducted between July and December 2024, revealed a concerning decline in customer spending and overall revenue, with smaller businesses feeling the strain while fine dining establishments maintain higher profit margins.

Among the top challenges identified by industry operators, the Skills Pass requirements emerged as the leading concern, driving labor shortages as workers opt for industries without such restrictions.

Other key issues included the BCRS scheme, HR shortages, waste collection regulations, and market saturation.

ACE has urgently called on the government to take decisive action to support the catering sector, highlighting key priorities for reform.

These include a reduction in VAT from 18% to 7% to alleviate financial pressures, revised licensing frameworks to prevent market oversaturation, optimisation of the BCRS system to eliminate inefficiencies and reduce costs, and a stronger focus on workforce development to address skill shortages and improve employee retention.

During the event - which was also attended by the Deputy Prime Minister and Minister for Foreign Affairs and Tourism. Dr Ian Borg - ACE President Michelle Muscat underscored the need for a unified approach.

“Despite these struggles, the industry has achieved significant milestones, with Maltese restaurants receiving recognition in the Michelin Guide 2025 and Forbes Travel Guide's Rating. We look positively ahead because the government has always supported the industry. Hand on heart, the industry would be in a much worse state if the government hadn’t intervened during the COVID-19 pandemic," she acknowledged.

However, she stressed that while these efforts were crucial in stabilising the sector, additional support is necessary to ensure its long-term viability. Urging industry operators to take a proactive approach, she cautioned against short- sighted decision-making.

"Every operator must understand that their actions, their decisions, and their inactions will inevitably affect the industry at large," she warned, calling for greater responsibility among businesses.

She emphasised that sustainability is a shared responsibility, requiring cooperation between ACE, business owners and policymakers.

Concluding her address, she called on all stakeholders to unite in strengthening the catering industry.

"May I ask each and every one of you present, in your capacity, to join forces to make this industry one for all of us to be proud of," she stated, reinforcing the need for collective action to secure a prosperous and sustainable future for Malta’s hospitality sector.